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We assisted the Department of Transportation (DOT) in ascertaining whether the net excise tax revenue distributed to the Highway Trust Fund (HTF) for the fiscal year ended September 30, 2005, is supported by the underlying records. As agreed with DOT, we evaluated fiscal year 2005 activity affecting distributions to the HTF. In performing the agreed-upon procedures, we conducted our work in accordance with U.S. generally accepted government auditing standards, which incorporate financial audit and attestation standards established by the American Institute of Certified Public Accountants. These standards also provide guidance for performing and reporting the results of agreed-upon procedures.

The adequacy of the procedures to meet objectives is the Department of Transportation's responsibility, and we make no representation in that respect. The procedures we agreed to perform relate to (1) transactions that represent the underlying basis of amounts distributed to the HTF, (2) the Internal Revenue Service's (IRS) quarterly HTF certifications, (3) the Department of the Treasury's Financial Management Service adjustments to the HTF during fiscal year 2005, (4) IRS's precertification1 of receipts for each quarter of fiscal year 2005, (5) certain procedures of the Department of the Treasury's Office of Tax Analysis's (OTA) process for estimating amounts to be distributed to the HTF for the fourth quarter of fiscal year 2005, and other procedures related to (6) the net amount of fiscal year 2005 excise taxes distributed to the HTF, (7) transactions that represent total IRS tax revenue receipts and refunds, and (8) reconciliations of IRS records to Treasury records.